Callanquitas Operation Posts Record C$78.5 Million in Revenue Over 9 Months
Key Facts
PPX Mining said on November 11 that its Callanquitas operation in Peru posted record revenue of C$78.5 million for the nine months ended September 30, 2026. The company said gross profit was C$48.7 million, operating profit C$47 million and pre-tax income C$47.3 million. The figures relate to the Callanquitas operation and do not represent consolidated financial results for PPX. The announcement reflects on-site mining activity and the sale of mineral material processed by a third party for a fee. The company also said it was entitled to C$32.4 million, or 80.5 million Peruvian soles, from net profits under an agreement with its mining partner.
Gross profit margin was 62.0%, while operating profit margin reached 59.9% over the same period. These margins put revenue alongside what the operation generated after accounting for its gross and operating costs, as reported by the company. For comparison, Callanquitas recorded revenue of C$52.4 million, gross profit of C$26.9 million and pre-tax profit of C$25.1 million for full-year 2025. Revenue in the first nine months of 2026 therefore exceeded the operation's total revenue for the previous year. The periods differ: the current figures cover nine months, while the 2025 data cover a full year.
The C$32.4 million represents PPX's entitlement to net profits, or Net Profit Interest, and not net interest income. Under the assignment agreement with Proyectos La Patagonia S.A.C., PPX, through a Peruvian subsidiary, is entitled to an amount equal to 75% of pre-tax income generated by the mining operation, subject to the agreement's terms. This explains the connection between pre-tax income of C$47.3 million and the entitlement attributed to PPX, without making the two figures the same measure. The company also reported the entitlement in local currency, at 80.5 million Peruvian soles. The results are based on mining at Callanquitas, as well as the sale of mineral material processed by a third party for a fee.
Callanquitas is part of the Igor project, which includes development of a processing plant with a design capacity of 350 tonnes per day, alongside exploration programs at Callanquitas and Portachuelos. PPX said its priorities include completing the regulatory procedures required to begin commercial production at the plant, continuing mining at Callanquitas and evaluating additional mineralized areas within the Igor project. On November 2, the company said it had formally begun the regulatory permitting process to operate the plant. This included submitting an application to inspect the completed components, as well as a separate application for a water-use permit. The company identified completion of these procedures as the next step before commercial production begins at the facility.
PPX said in May that the processing plant's start-up would be delayed as it worked with the municipality, local communities and the regional government to address questions and concerns related to planned operations. The company said at the time that ore from the Callanquitas mine would continue to be processed at third-party facilities during the interim period. PPX expected the completed plant to reduce mining, transportation and processing costs, while enabling higher throughput and improving metal recovery and operating efficiency. Those benefits remain contingent on completing the plant and permitting procedures and beginning commercial operations. In the meantime, the company says its plan combines continued mining at Callanquitas with completion of regulatory procedures and evaluation of additional mineralized areas in the Igor project.